Great Adventures Problem AP11-1

Great Adventures Problem AP11-1 The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. $ 202,250 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues : Expenses : Cost of goods sold $ 40,300 Operating expenses 73,360 Depreciation expense 19,950 Interest expense 11,274 Income tax expense 16,300 Total expenses Net income 161, 184 $ 41,066 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 Increase (I) or Decrease (D) 2021 $ $ 318,014 50,840 10,600 1,260 $ 52,620 0 0 5,940 265,394 (I) 50,840 (I) 10,600 (I) 4,680 (D) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 860,000 908,000 99,080 (28,850) $2,218,944 0 0 58,000 (8,900) $ 119,900 860,000 (1) 908,000 (I) 41,080 (I) 19,950 (I) $ $ 33,120 (I) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes payable (current and long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 36,640 930 16,300 31,800 883,078 $ 3,520 930 14,360 0 33,600 1,940 (1) 31,800 (1) 849,478 (I) 156,000 1,231,600 60,596 (198,000) $2,218,944 20,000 0 35,250 0 $ 119,900 136,000 (I) 1,231,600 (I) 25,346 (I) (198,000) (I) Additional Information for 2022: 1. Land of $860,000 was obtained by issuing a note payable to the seller. 2. Buildings of $908,000 and equipment of $41,080 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $10,522. 4. Issued common stock for $1,360,000. 5. Purchased 13,600 shares of treasury stock for $33 per share. 6. Sold 7,600 shares of treasury stock at $34 per share. 7. Declared and paid a cash dividend of $15,720. Additional Information for 2022: 1. Land of $860,000 was obtained by issuing a note payable to the seller. 2. Buildings of $908,000 and equipment of $41,080 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $10,522. 4. Issued common stock for $1,360,000. 5. Purchased 13,600 shares of treasury stock for $33 per share. 6. Sold 7,600 shares of treasury stock at $34 per share. 7. Declared and paid cash dividend of $15,720. Required: Prepare the statement of cash flows for the year ended December 31, 2022, using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: $ 0 Net cash flow from operating activities Cash Flows from Investing Activities 0 Net cash flow from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0